Why the salay packages of employees in Private sector are kept confidential. ? what are the advatages& disadvantages to organisations/employees by keeping the package/ctc confidential?
From India, Hyderabad
From India, Hyderabad
Rao,
Pvt companies packages are performance based. Variable components are there and those variables are based on apprisal. In this way, the organisation's goals are met. That is why Pvt companies outperform govt companies.
"Perish or Perform" mantra is adopted in Pvt organisations
Pon
From India, Lucknow
604Pvt companies packages are performance based. Variable components are there and those variables are based on apprisal. In this way, the organisation's goals are met. That is why Pvt companies outperform govt companies.
"Perish or Perform" mantra is adopted in Pvt organisations
Pon
From India, Lucknow
I beg to disagree to this logic sir,because
1. It is difficult to keep 100% confidential. some HR/IT/Finance/friend can always know.
2. one will always have the doubt whether he is being offered right package(even the person who is getting more) as per his caliber. Also, HR guys will always try to fix low to show their efficiency.
3. Everybody do not have the same negotiation skills. Because of this right candidates not having good negotiation skils/not knowing the job market trends as they are confidential to many, will suffer.
4. Performence appraisals are always more subjective in nature whether it is govt or private. (more so in private).
I feel keeping ctc/package confidential, increase more discontent/more unhealthy comparisions and may not be benificial both to organisations and individuals.
Instead organisations can openly declare CTC/PACKAGE bands for each grade/designation. For high performence individuals,they can always give quick promotions, special bonus confidentially.
Only variable package components (performence linked incentives) can be confidendential ,all other components need not be confidential.
I feel performrnce of govt and pvt companies is difficult to compare on this perameter (confidentiality of package) alone as they work very differently on many perameters (accountability,freedom in operation ,systems,regulations,vigilence/ethics etc etc)
From India, Hyderabad
1. It is difficult to keep 100% confidential. some HR/IT/Finance/friend can always know.
2. one will always have the doubt whether he is being offered right package(even the person who is getting more) as per his caliber. Also, HR guys will always try to fix low to show their efficiency.
3. Everybody do not have the same negotiation skills. Because of this right candidates not having good negotiation skils/not knowing the job market trends as they are confidential to many, will suffer.
4. Performence appraisals are always more subjective in nature whether it is govt or private. (more so in private).
I feel keeping ctc/package confidential, increase more discontent/more unhealthy comparisions and may not be benificial both to organisations and individuals.
Instead organisations can openly declare CTC/PACKAGE bands for each grade/designation. For high performence individuals,they can always give quick promotions, special bonus confidentially.
Only variable package components (performence linked incentives) can be confidendential ,all other components need not be confidential.
I feel performrnce of govt and pvt companies is difficult to compare on this perameter (confidentiality of package) alone as they work very differently on many perameters (accountability,freedom in operation ,systems,regulations,vigilence/ethics etc etc)
From India, Hyderabad
if we keep the ctc or package confidential means what. no company decalirs that salary salary or package of xyz is this. it declairs the increments not publicly the question of confidentality dosent arises.
From India, Pune
From India, Pune
I mean the ctc/package bands/range for each designation/grade in a company to be made public/known to all to avoid unnecessary confusion to all (existing employees/prospective candidates etc)
From India, Hyderabad
From India, Hyderabad
Dear Rao,
The practice of having ctc/package bands/range is followed in sectors like manufacturing which has a comparatively stable attrition rate. Industries like IT/ITES have a very high attrition rate because of which company may try to retain the performers by the means of salary negotiations.
This also depends on the company culture where some companies do not shy away from distinguishing its key performers in compensation whereas some companies are slightly conservative.
From India
The practice of having ctc/package bands/range is followed in sectors like manufacturing which has a comparatively stable attrition rate. Industries like IT/ITES have a very high attrition rate because of which company may try to retain the performers by the means of salary negotiations.
This also depends on the company culture where some companies do not shy away from distinguishing its key performers in compensation whereas some companies are slightly conservative.
From India
No mr. Rao,
That will not work. Giving bands is no use as people don't know who got what. It's like not knowing at all
Though hr knows, mostly they will not tell or discuss. People lose jobs for giving out confidential data. In most companies, salary is not fixed by hr but by functional heads. Of course many functional heads are happy to pass this on to hr as they arent confident od their ability to do it.
Everyone has doubt they are getting is fair. Comparison is also across companies, not just in same company. So the problem remains. At the moment competition or discontent is on speculation, but if the figures are available, discontent will arise. Few employees are unbiased in their own assessment of their work vs others. They will not be able to understand that someone got better salary cause they are better.
Performance appraisal is subjective. Except for piece rate workers, you performance is what your reporting superior thinks it is. That can't be helped.
From India, Mumbai
That will not work. Giving bands is no use as people don't know who got what. It's like not knowing at all
Though hr knows, mostly they will not tell or discuss. People lose jobs for giving out confidential data. In most companies, salary is not fixed by hr but by functional heads. Of course many functional heads are happy to pass this on to hr as they arent confident od their ability to do it.
Everyone has doubt they are getting is fair. Comparison is also across companies, not just in same company. So the problem remains. At the moment competition or discontent is on speculation, but if the figures are available, discontent will arise. Few employees are unbiased in their own assessment of their work vs others. They will not be able to understand that someone got better salary cause they are better.
Performance appraisal is subjective. Except for piece rate workers, you performance is what your reporting superior thinks it is. That can't be helped.
From India, Mumbai
Thank you for the insight/views on the subject matter.
I feel the situation that everyone has doubt about what they are getting is fair or not is also not good for Organisations and employees.
Also, if the ranges/bands for grades/similar profiles are not known, and if HR guys do not rationalise the compensation packages for similar profiles at the time of recruitment - rihgt candidates who may not have proper negotiation skills and ignorant of job market trends will suffer. This is also not good for organisations.
From India, Hyderabad
I feel the situation that everyone has doubt about what they are getting is fair or not is also not good for Organisations and employees.
Also, if the ranges/bands for grades/similar profiles are not known, and if HR guys do not rationalise the compensation packages for similar profiles at the time of recruitment - rihgt candidates who may not have proper negotiation skills and ignorant of job market trends will suffer. This is also not good for organisations.
From India, Hyderabad
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Published_draft _rules_on Employees_ compensation 3.6.2020.pdf
Compensation Benchmarking Survey.doc
NEW PAY PACKAGE (Call center).xls